Kmart Says Drug-Pricing FCA Suit Built On False Premise

Law360, New York (June 4, 2012, 1:26 PM EDT) -- Kmart Corp. on Friday tried to inoculate itself against a pharmacist's False Claims Act lawsuit over allegedly excessive charges to Medicare and Medicaid, saying its drug sales are walled off from the programs by several middlemen, immunizing it to allegations of defrauding Uncle Sam.

Ohio druggist James Garbe, who began working for Kmart in 2007, took aim at a membership loyalty program that offers low-cost generic drugs, claiming his employer bilked the federal government and two dozen states by charging them far more than the "usual...
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